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Viewing cable 08JAKARTA691, INDONESIAN AUTHORITIES DEREGISTER ADAM AIR PLANES

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Reference ID Created Released Classification Origin
08JAKARTA691 2008-04-07 03:32 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO4733
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0691 0980332
ZNR UUUUU ZZH
R 070332Z APR 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8574
RUEHGP/AMEMBASSY SINGAPORE 6288
INFO RUEHZS/ASEAN COLLECTIVE
UNCLAS JAKARTA 000691 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT PASS FAA HQ 
DEPT PASS EX-IM 
DEPT FOR EAP/MTS, EB/A/TRA/DL AND EEB/IFD/ODF-WILLIAMS 
SINGAPORE FOR FAA-WALSH 
 
E.O.  12958: N/A 
TAGS: EAIR ECON EFIN EINV CASC ETRD PGOV ID
SUBJECT: INDONESIAN AUTHORITIES DEREGISTER ADAM AIR PLANES 
 
REF: JAKARTA 00598 
 
1.  (U) Summary.  Four U.S. companies held aircraft leased to 
Adam Air when the airline was grounded by Indonesian 
authorities on March 19, 2008.  The leasing companies have 
been successful in deregistering nine planes without 
difficulty.  End Summary. 
 
2. (U) The Directorate General of Civil Aviation (DGCA) 
deregistered two planes leased by U.S. company CIT Aerospace 
(CIT) effective April 1, 2008.  CIT Vice President Volker 
Fabian told us on April 3, 2008 that repossession of these 
aircraft was "not any more or less complicated" than 
repossessions he has done in other countries.  He said 
personal relationships with key players were most important in 
coming to agreements on repossession.  One CIT plane still 
awaits damage assessment after it skidded off a runway on 
March 10, 2008. 
 
3. (SBU) General Electric Commercial Aviation Services (GECAS) 
leased seven Boeing 737 aircraft to Adam Air.  DGCA 
deregistered four of those planes on March 25, 2008 and the 
rest three days later.  In a meeting with Ambassador Hume on 
March 26, 2008, GE President of Southeast Asia Stuart Dean 
said that GECAS had undergone deregistration of aircraft four 
times with Indonesia's DGCA and that each time was better than 
the last.  GE Director of Market Development David Hutagalung 
told us on April 2, 2008 that, "This has been the best so far" 
and the fastest, although it "could always be faster." 
Hutagalung said the personal relationship GE has with the 
Minister of Transportation helped speed the process along. 
 
4. (SBU) U.S. company Aviation Capital Group (ACG) leased two 
planes to Adam Air, which DGCA deregistered on April 3, 2008. 
Oene Marseille, ACG's local counsel, told us on April 3, 2008, 
"In my view, the deregistration went relatively smoothly, 
although there was some concern when the DGAC verbally 
expressed the need for Adam Air consent on the deregistration 
application."  In a meeting between ACG, DGCA officials and us 
on March 31, 2008, Director for Airworthiness Certification 
Yurlis Hasibuan said that he wanted an "operating rule" that 
would allow DGCA to immediately authorize deregistration of 
aircraft, but until then DGCA requires the airline to present 
a written statement that it does not oppose deregistration. 
Hasibuan said although the leasing contracts were signed 
before the Cape Town Treaty (an international treaty that 
attempts to standardize the transactions of movable property, 
particularly aircraft and aircraft engines) DGCA was committed 
to upholding the principles of the Treaty. 
 
5. (U) Other planes leased to Adam Air include: two planes 
from Ireland-based AWAS, which plans to submit deregistration 
documentation soon, three planes from U.S.-based Jetscape and 
five 737-200 planes from local company Airgo, neither of which 
have indicated an interest in deregistering their planes with 
Adam Air. 
 
HUME